Federal budget continues attacks on youth

May 3, 2016

Treasurer Scott Morrison presented his proposed budget for 2016-2017 on May 3, but what does the budget mean for young people today? How does it address higher education and growing youth unemployment?

From April 1 next year, job seekers under 25 who are receiving welfare payments such as Newstart and have been looking for a job for at least six months, will be able to participate in intensive pre-employment skills training within five months of registering with jobactive.

Under the scheme, more than 30,000 young people will be eligible to participate in the intensive three-tiered Youth Jobs PaTH (Prepare-Trial-Hire) program, consisting of 6 weeks of pre-employment skills training, leading to placement in a 6-12 week internship program with a local business.

Interns will be required to work for 15 to 25 hours a week and will receive $200 a fortnight on top of their usual welfare payments. Businesses that take on interns will receive an upfront payment of $1000, and on completion of the internship, subsidies of up to $10,000 if they decide to offer ongoing employment to a young person who is classified as less job-ready.

The proposed Youth Jobs PaTH program amounts to nothing more than exploitation of unemployed young people who are currently receiving welfare payments. It allows employers to pay young workers only $4 an hour to boost their bottom line and increase their profits through the exploitation of labour.

Young people need jobs that are paid with proper wages, are secure and have good working conditions, as opposed to being forced to be trialled in low paid internships through this scheme. Instead of spending millions of dollars forcing young job seekers to be exploited by employers in low-paid internships, the government should be investing in a proper jobs program that gives young people real opportunities and potential for growth.

In the budget more than $500 million was cut from the Work for the Dole scheme and job seekers will now be required to have received Newstart for 12 months before undertaking work for the dole. The government is also scrapping the carbon tax compensation scheme for new welfare recipients, which will mean young people who are on Newstart or Youth Allowance will lose up to $14.10 a fortnight.

The budget also continues to allocate money to trailing cashless welfare, which restricts 80% of welfare payments to a card with restrictions on what they can purchase. If this were to be implemented across the board it would be a violation of civil liberties and have a disempowering effect on people who currently receive welfare.

Universities face renewed funding uncertainty, with the budget abandoning the government's controversial policy of university fee deregulation, which would have given universities the ability to set their own course fees. The budget also stripped $1.4 billion over four years from higher education funding.

The budget proposes cutting funding to higher education by $601 million in 2018-2019 and a further $868 million in 2019-2020. If these cuts pass it will lead to job losses in higher education and lower quality of teaching provided by universities.

But in this budget the government will increase funding to the military, with overall funding of $32.3 billion in the next financial year, including more than $1.6 billion to be invested in innovation. This funding disparity between the military and higher education demonstrates the misplaced priorities of the government and leads us to ask in what world is the strengthening of our military considered a more valuable commodity than the education of our young people.

An analysis of the budget by the Australian Services Union reveals there will be cuts to the funding of mental health services, including a 75% cut in funding over two years for specialist youth mental health programs provided by Headspace and the Youth Psychosis program. These programs should have their funding increased to address growing rates of depression and mental illness in youth.

More than $115 million will be cut to funding of homelessness services, including refuges for women and young people, from July next year. This will inevitably lead to an increase in youth homelessness. The budget also failed to address the broader issue of homelessness by investing in more public housing.

The budget does little to address the pressing needs of young people in terms of employment, the need for quality higher education. We need a budget that priorities the needs of people and communities, but this budget prioritises the 1% by lowering the corporate tax rate and cutting funding to higher education and essential community services such as mental health and homelessness services.

It is telling that there is almost nothing in the budget about how to tackle the growing climate crisis through investing in renewables, an issue that will disproportionately affect our future generations.

Young people deserve better than what is being offered in this lousy budget, there needs to be collective action and organisation to put forward alternatives that put the needs of people before corporations and the rich.

Like the article? Subscribe to Green Left now! You can also like us on Facebook and follow us on Twitter.

You need Green Left, and we need you!

Green Left is funded by contributions from readers and supporters. Help us reach our funding target.

Make a One-off Donation or choose from one of our Monthly Donation options.

Become a supporter to get the digital edition for $5 per month or the print edition for $10 per month. One-time payment options are available.

You can also call 1800 634 206 to make a donation or to become a supporter. Thank you.